Businesses have become increasingly complex as the global marketplace has expanded. As such, many businesses now encompass large, often unwieldy, infrastructures. In addition to the physical expansion of businesses, many have greatly expanded the breadth of merchandise offered. Many businesses, such as retail stores, offer a wide variety of merchandise, for example clothing, sporting goods, and home furnishings. Furthermore, the depth of the merchandise offered has also expanded in an attempt to attract and maintain a large customer base. For instance, businesses often carry many variants, such as size or color, of the same article of clothing. This is particularly true in certain businesses such as retail fashion sales where clothing is available in a plethora of variations. This combination of a large infrastructure and a vast array of merchandise creates great difficulty in ensuring the proper flow of merchandise through the business.
Maintaining the proper allocation of merchandise is critical in a marketplace where customer loyalty is often fleeting. Customers desire both depth and breadth in merchandise to provide them with a multitude of purchasing choices. In addition, the allocation of merchandise to a store location can impact the overall layout of the store and thus, the presentation made to the customer. Furthermore, allocation is one of the manners in which a business can proactively manage inventories to maximize profitability. Clearly, the importance of an allocation scheme in a modern retail business is relatively high.
Goods are generally not allocated in a vacuum. In fact, in many business models, the allocation system is intricately interwoven with the other various aspects of the business to form one integrated network of systems. One system with which allocation is often associated is procurement. The procurement system is the portion of the business model which provides the goods, for example, by obtaining supplies from vendors.
With the increasing significance of streamlined allocation and flexibility in business management, a need has developed for a business model wherein the allocation system and the procurement system are able to synchronize to more effectively integrate the allocation system into the procurement system. Thus, there is a need for a business model that provides for an allocation system which is capable of synchronizing with a procurement system to provide for increased functionality and a more efficient operation.